Reconnection failure penalties 001-10120010

The Job Seeker Compliance Framework focuses on encouraging CDP job seekers to remain engaged with their provider and to comply with their mutual obligation requirements. Financial penalties are only imposed for failures within a CDP job seeker's control that is, as a result of wilful, negligent, deliberate or persistent non-compliance.

An applied reconnection failure displays a status of:

• 'Applied with penalty' where the failure attracts a financial penalty, or
• 'Applied without penalty' where the failure is by legislative definition a connection failure which cannot attract a penalty

Where a reconnection failure is 'Applied' with penalty, the CDP job seeker enters into a reconnection failure period. A penalty amount will be calculated for each business day of the reconnection failure period.

A reconnection failure is applied without penalty if there is no basis for the reconnection requirement to have been issued. For example, where it was issued a result of an applied connection or No Show, No Pay failure and that failure is revoked, or if it was issued by a provider but it is established that the CDP job seeker had not failed to attend an appointment with them. Where a reconnection failure is applied without penalty the CDP job seeker has not entered a reconnection failure period and, therefore, a reconnection failure penalty is not calculated.

A reconnection failure period commences from the reconnection failure event date and continues until the day before:

• the CDP job seeker complies with the further reconnection requirement including situations where the CDP job seeker is deemed to have self re-engaged
• the Services Australia determines the CDP job seeker is no longer required to comply with the further reconnection requirement
• the CDP job seeker is formally notified of a requirement to attend a Comprehensive Compliance Assessment (CCA)
• the event date of a reconnection failure rejected in the same sequence for reasons not related to the existence of an outstanding CCA or due to payment cancellation
• it is determined the CDP job seeker cannot be re-engaged in within the next 2 working days excluding public holidays (providing the CDP job seeker has agreed to re-engage)
• the CDP job seeker's re-engagement appointment is rescheduled/cancelled via the Reschedule Participation Appointment workflow
• the CDP job seeker's re-engagement appointment is rescheduled/cancelled by their provider
• the CDP job seeker's participation payment is cancelled to grant a non-participation payment
• the CDP job seeker's participation payment is cancelled for at least 10 weeks or re-granted with a break in payment, or
• the CDP job seeker commences a serious failure period or Unemployment Non-Payment Period (UNPP)

The reconnection failure period will end however the CDP job seeker will generally still be required to re-engage if the CDP job seeker is currently serving a reconnection failure period and:

• a reconnection failure (in the same sequence) is rejected for reasons other than notification of a CCA requirement or cancellation of payment
• they are willing to re-engage but a new appointment cannot be arranged within 2 working days, or
• a re-engagement appointment is rescheduled (due to a reasonable excuse) by either the of Services Australia or the CDP job seeker's provider

If they do not re-engage, a further reconnection failure may be generated and applied resulting in the reconnection failure period recommencing from the new reconnection failure event date.

Reconnection failure penalties are based on a 'business day' calculation. This means that the CDP job seeker will generally accrue a daily penalty equal to one tenth of their fortnightly payment for each day the penalty applies. Saturdays and Sundays falling in a reconnection failure period will not accrue a penalty.

The reconnection failure penalty is calculated based on the CDP job seeker's basic benefit and certain supplementary payments. The reconnection failure penalty is calculated after the income and assets test has been applied to the CDP job seeker's basic benefit but before any withholdings of penalty amounts for previous failures or withholdings are deducted for debts or advance payments.

The following participation related supplements are included in the calculation of the reconnection failure penalty:

• Approved Programme of Work Supplement (APWS) - paid to participants in Work for the Dole
• Language, Literacy and Numeracy Supplement (LLNS)
• Energy Supplement paid on a fortnightly basis. Note: the Energy Supplement is not included in the penalty calculation if it is paid on a quarterly basis

If the CDP job seeker resides in a Remote Engagement Program trial region, and is in receipt of the Remote Engagement Program Payment for participation in a Remote Engagement Placement, the Remote Engagement Program Payment is not included in the penalty calculation.

CDP job seekers are required to continue to meet their regular reporting requirements during a reconnection failure period.

Further connection, non-attendance failures and No Show, No Pay failures cannot be applied where the failure event occurred during a period the CDP job seeker was in a reconnection failure period.

While further reconnection failures in the same sequence of failures can be applied during a reconnection failure period, a reconnection failure relating to a different sequence of failures, that is, linked to a different Non-Attendance Report sequence, connection, non-attendance or No Show, No Pay (disengagement) failure cannot be applied during a reconnection failure period.